Display as a bar chart the periods since 1854 that are designated as U.S. recessions by the National Bureau of Economic Research (FRED code: USREC). Why has the frequency of recessions declined over time? Could improvements in monetary policy have played a role? Improvements in fiscal policy? Can you think of any other causes?
Answer to relevant QuestionsThe government is heavily involved in the financial system. Explain why.In the past, policymakers occasionally became aware of a recession only well after it began. Can they do better? Plot the probability of a recession from a statistical model (FRED code: RECPROUSM156N). To what extent could ...Explain why monetary policymakers’ actions in cutting the Federal Funds rate to almost zero were not sufficient to boost economic activity during the recession of 2007-2009. Suppose there is an unexpected slowdown in the rate of productivity growth in the economy so that forecasters consistently overestimate the growth rate of GDP. If the central bank bases its policy decisions on the consensus ...In the wake of the financial crisis of 2007-2009, would you anticipate the bank lending channel becoming more or less important in the U.S. in the near future? Explain your answer.
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